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Jones Consulting is deciding where to place a new office. The candidate cities are Chicago and Houston. A partially completed Factor Rating worksheet follows:
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- Lorraine has received a lump sum of R500 000.00 from her retirement fund. She intends to use these funds to start a student accommodation business. In order to start this business, Lorraine would need approximately R1 million, funds are needed for building the students accommodation apartments and to register with various regulatory bodies. She has to source additional funding in order to realise this dream. In the business plan, Lorraine has outlined the following:• Accommodation will be offered ONLY to students in Cape Town, Johannesburg, Mpumalanga and Polokwane.• ONLY females will be approved to reside in these houses, between the age of 18 - 35.• Marketing of the business will be done on community Radio stations only at the four mentioned cities.• It is going to be a family business, Friends and relatives Q.4.2Suggest any TWO sources of finance that Lorraine should consider. Justify your choice.Tip: you will be awarded marks for theory and justificationThe current system for allocating budgets for the local depots of a national office-cleaning com- pany gives each depot a fixed sum of £35,000 plus an extra £500 for each corporate client in the area the depot covers. la) Express the budget allocation model as an equation and portray it graphically. (b) Use your equation from (a) to work out the budget allocations for the following depots: li) Ashford, which has 43 corporate clients (ii) Byfleet, which has 29 corporate clients liii) Carlton, which has 66 corporate clients (c) A new accountant at the company head office wants to alter the budget allocation model by reducing the fixed sum to £20,000 and increasing to £800 the extra for each corporate client. What changes will these alterations mean for the depots in (b)?Wiebe Trucking, Inc., is planning a new warehouse to servethe western United States. Denver, Santa Fe, and Salt LakeCity are under consideration. For each location, annual fixedcosts (rent, equipment, and insurance) and average variablecosts per shipment (labor, transportation, and utilities) arelisted in the following table. Sales projections range from500,000 to 600,000 shipments per year. a. Plot the total cost curves for all the locations on a singlegraph.b. Which city provides the lowest overall costs?
- Mrs. Z, vice president for operations of XY, Inc., a manufacturer of imaginary product T, is constrained from meeting her 5-year forecast by limited capacity at the company’s two existing facilities, which are in San Diego, California (F1) and Grenville, South Carolina (F2). As her able assistant, you have been told that because of existing capacity constraints and the expanding market for the company’s product, a third plant is to be added. The real estate department has advised Mrs. Z that two potential sites seem particularly good, located in Waco, Texas (F3), and Norfolk, Nebraska (F4). The company ships the products to three demand markets in East (M1), Mid-West (M2), and West (M3), via its two cross-docking distribution centers in Colorado (D1) and Kentucky (D2). You are asked to find the optimal distribution strategy that will determine where the third facility be located (F3 or F4), and the best distribution pattern across the supply chain. The company consider the…Case: The Yellowstone Story Home Country as Largest Production Country Monstansa is Yellowstone's most important location. It is where the company was founded in 1949, it is the location of the headquarters and it is also Yellowstone's biggest manufacturing site. More than one third of all Yellowstone products are produced in Monstansa (577,000 products in 2013). It has all the major components of manufacturing production process: a farm, an agro processing facility, an assembly line and even a label print shop. The factory builds some of the company's most important products (A3, A4, A5 and Q5). For many of the products, Monstansa serves almost as a world market factory, supplying most countries with their respective products, and having a high level of value added for these lines. The Monstansa factory even has an in-house tool-making department, which develops and builds meta-forming tools and assembly-line systems for the factory but also for other factories in the Yellowstone and…Fort Wayne Plastics Inc is trying to develop a plan for its workforce and production levels for the six-month period from January to June. The firm produces plastic components. Forecast demands over the next six months are 1,304, 633, 809, 1,175, 2,146, and 1,373. There are currently (end of December) 347 workers employed in the plant. Ending inventory in December is expected to be 461 units, and the firm would like to have 575 units on hand at the end of June. The cost of hiring one worker is $546. The cost of firing a worker is $900. The cost of holding one unit of inventory for one month is $60. In the past, the plant manager observed that over 21 working days, with the workforce level constant at 76 workers, the firm produced 233 plastic components. The number of working days per month from January to June for this year is 26, 25, 25, 17, 22, 17. Find the optimal production per month as well as the corresponding optimal cost for this plan. P1 Number P2= Number P3 Number P4 Number…
- AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90- degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 1 (IN 0005) 33 14 51 6 4 10 YEARLY DEMAND 2 (IN 000s) 3 (IN 000s) 4 (IN 0005) 42 15 54 6 4 Plastic Demand for plastic sprinklers Percentage of capacity used Machine requirements Labor requirements Bronze Demand for bronze sprinklers Percentage of capacity used Machine requirements Labor requirements 12 54 18 61 5 6 14 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 15,000 sprinklers. The plastic…SOLVE USING EXCEL Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.How did they get 3% and 1 % (%price difference)
- (use excel to show formulas used) Amazing is evaluating three locations for a second headquarters. Costs for construction at location A are $18,900,000, Location B are $21,700,000 and Location C are $23,300,000. Variable costs for Location A are $16, Location B are $14 and Location C are $12. The company plans to sell products for $27. What is the break-even point for each location?Read the scenarios below to answer the following question : After operating from the founder’s garage for three years, the team at Yebo Sauce, a condiment manufacturing business, that is dealing primarily in table sauces, has decided that it is time to expand their operation to the rest of Gauteng province. The implication of this expansion is that they need to introduce wide-ranging supply chain management processes within the business. As the newly appointed head for the logistics part of the operation, your primary focus is to align all employees and managers to the key concepts, processes and implications of adopting the necessary supply chain processes. Sauces & Spices Revenue in the Sauces & Condiments segment amounts to US$486.40m in 2022. The market is expected to grow annually by 3.49% (CAGR 2022-2027). In global comparison, most revenue is generated in China (US$38.24bn in 2022). In relation to total population figures, per person revenues of US$8.01 are generated…The Candle Company plans to open a new retail store in Portland, Maine. The store will sell specialty candles for an average of $10 each. The average variable costs per candle are as follows: Wax $4 Other additives $2 Base $1 The company is negotiating its lease for the new location. The landlord has offered two leasing options: Option A) a lease of $2,500 per month; or Option B) a monthly lease cost of $2,000 plus 10% of the company's monthly sales revenue. The lease option that is more attractive for the company under its current sales expectations is option B, the fixed lease payment plus sales based commission because it results in the lowest total lease costs The indifference point is The company expects to sell approximately 400 candles per month. Requirement 2. At what level of sales (in units) would the company be indifferent between the two lease options? Show your proof. candles. Begin by selecting the equation to determine the indifference point. (Abbreviations used" FC =…